Should I Trade Binary Options? Are They a Scam? // Binary options trading reviews Strategy Options trading 101 welcome to looking at the markets with David Moadel
today we're going to talk about binary options
should I and should you trade binary options
well let's take a look bedding or gambling with binary options binary
options in which you bet on whether a currency or stock or commodity and so on
we'll go up or go down or reach a certain price etc
within a short time frame for example you might make a bet that the US dollar
will rise versus the euro exactly one minute from now
so why are traders tempted by binary options binary options might seem
tempting because oftentimes you can start with a small amount of money and
brokers sometimes offer
signup bonuses but if you read the fine print
you might find that there's a catch for example you might be required to trade a
large amount of money before you can withdraw your funds so trading or
gambling
personally I don't claim to be able to predict where any stock currency or
commodity will go within the next day
not to mention the next hour or the next minute I find such a short-term price
movements to be essentially random
besides as you'll see in the next slides the house which is the broker has built
as a built-in advantage that will most likely cause you
the trader to lose money over a large number of trades
let's take a look at these screen captures I've collected from various
places around the web
various for binary options websites
this one has more offers an eighty-one percent pay out and if that sounds like
a lot
I mean that's actually pretty good for these binary options brokers but think
about it what that means is that if let's say you bet a hundred dollars on
the direction of the euro versus the US dollar
alright so if you're right
then you win 81 dollars if you're wrong
then you lose a hundred dollars
the hundred that you that you bet ok so if you keep making trades like this over
a long period of time
it's it's an uphill battle I I don't see how anybody could really expect to to do
well if every time you make a bet you every time you win you get 81 dollars
and every time you lose you lose a hundred dollars that just doesn't make
sense to me
here's another one and here the payout is eighty percent
here's another one that boasts eighty-five percent that's that's better
but still if that sounds good to you again
I mean think about it how would you like to have to deal with losing on average
fifteen percent over a long period of time
it just doesn't make sense this one offers eighty-three percent this one
seventy-six percent
I mean that to me that's just terrible yeah
if if if you if you're walking down the street and you met somebody and he says
all right I'm going to flip this coin
and if it's if it lands on heads you win 70 i'll give you seventy six dollars
that lands on tails you have to give me a hundred dollars would you take that
bet
I mean come on and i'm not saying that you know the movement of gold for
example is as random as a coin flip
but again over a large number of coin flips or are or over a large number of
trades
you're really a huge disadvantage and hears from another website where you can
see some of the payouts are eighty-one percent this one is 76 this one
sixty-five percent
not too good
so put the odds in your favor the choice is yours
but i would rather put the odds in the investors favor
not the brokers i strongly recommend avoiding binary options trading in favor
of a safer more reliable trading plan that steadily grows your account over
time so if you need more help with investing trading options stocks or
anything of that nature
feel free to contact me I'm glad to speak with you a
my name is David motel and my email address is David Modell @ gmail.com
thanks a lot i hope this was helpful and hope to talk to you again soon